The Australian Prudential Regulation Authority (APRA) today released the Annual Superannuation Bulletin for the year to 30 June 2006, which shows total superannuation assets rose in the period by $149.1 billion, or 19.5 per cent, to $912.0 billion.
Industry funds showed the largest growth during the year, with assets increasing by 26.0 per cent to stand at $150.5 billion. Assets of small funds increased by 22.4 per cent to $214.8 billion, retail funds by 22.0 per cent to $298.4 billion, public sector funds by 17.8 per cent to $152.0 billion and corporate funds by 0.3 per cent to $52.4 billion.
For the first time, APRA has reported information about the Vested Benefit Index (VBI) for defined benefit and hybrid funds. The VBI indicates the capacity of these funds’ assets to cover the total benefits payable to all members if they were to exit the fund on the reporting date. At 30 June 2006, 96.3 per cent of non-public sector defined benefit and hybrid funds reported that they had sufficient assets to meet total benefits payable (a VBI of at least 100 per cent).
The Bulletin includes, also for the first time, actuarial projections for long-term investment returns, wage growth and growth in the Consumer Price Index (CPI) reported by superannuation entities. These projections are key inputs used in assessing solvency and the recommended employer contribution rate required to fund liabilities of defined benefit funds.
For the year to 30 June 2006, contributions to all superannuation entities totalled $77.1 billion, with employers contributing $46.3 billion and member contributions totalling $29.6 billion. Other contributions, including spouse contributions and government co-contributions, totalled $1.1 billion.
Contributions to funds with more than four members totalled $61.2 billion. Of these funds, retail funds received 44.9 per cent ($27.5 billion) of total contributions, industry funds 25.2 per cent ($15.4 billion), public sector funds 24.6 per cent ($15.0 billion) and corporate funds 5.3 per cent ($3.3 billion).
Benefit payments from superannuation entities were $36.0 billion for the year to 30 June 2006, and net rollovers totalled $10.6 billion.
The Bulletin shows the net membership growth rate for funds with more than four members up 30 June 2006. Industry funds experienced the highest net membership growth rate of 5.6 per cent, followed by public sector funds at 5.1 per cent and retail funds at 3.7 per cent. Corporate funds experienced a net membership loss of 13.1 per cent.
Member exits were considerably greater in the year to 30 June 2006 than the previous year, with transfers to other superannuation entities and other exits comprising the largest proportion of member exits (58.1 per cent).
As at 30 June 2006, 42.4 per cent of total assets ($386.7 billion) were placed with investment managers, 35.5 per cent ($323.9 billion) in directly invested assets and 22.1 per cent ($201.3 billion) with life office statutory funds.
The return on assets (ROA) for superannuation entities with more than four members was 12.0 per cent for the year to 30 June 2006. Public sector funds had an ROA of 13.4 per cent, followed by corporate funds with 12.5 per cent, industry funds with 12.0 per cent and retail funds with 11.2 per cent.
The Annual Superannuation Bulletin comprises statistics on all superannuation entities based on actual, audited figures reported by the superannuation entity. The 2007 edition is the third Bulletin in this series.
Copies of the publication are available on APRA’s website at www.apra.gov.au/Statistics/Annual-Superannuation-Publication.cfm.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $2.5 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.
Media and industry inquiries only:
Stuart Snell, Head of Public Affairs
Australian Prudential Regulation Authority
Telephone: 02 9210 3384
Mobile: 0407 250 276
All other inquiries:
APRA Contact Centre 1300 131 060
